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Djibouti

Updated August 2, 2022

The small, arid East African country of Djibouti is
strategically located along one of the world's busiest
shipping routes on the Bab el Mandeb Strait, which serves
as the gateway from the Red Sea to the Gulf of Aden and
the Indian Ocean (Figure 1). Djibouti has become a hub for
foreign militaries. It is home to U.S. Africa Command's
Combined Joint Task Force-Horn of Africa (CJTF-HOA),
based at Camp Lemonnier, the only enduring U.S. military
installation in Africa. A former French colony, Djibouti
also hosts a sizable French military presence and provides
facilities for multinational antipiracy operations off
Somalia's coast. Japan established its first post-World War
II overseas military base there in 2011. The North Atlantic
Treaty Organization (NATO) opened a liaison office in
Djibouti to enhance regional antipiracy efforts in 2015.
China opened its first military base abroad there in 2017.
Italy also maintains military facilities in the country.
With almost no arable land, few natural resources, and little
industry, Djibouti's economy depends heavily on its
services sector and trade through its busy international port
complex. Rents and related revenue from foreign militaries
are an important source of revenue (reportedly over $125
million annually). The country is pursuing an ambitious
agenda to become a commercial trade hub for the region.
Landlocked Ethiopia, home to over 110 million people,
relies on Djibouti for the transit of 90% of its formal trade.
China's engagement with Djibouti is multifaceted, ranging
from major infrastructure investments to the expansion of
its geostrategic naval base. A Chinese-built rail line
connects Djibouti and Ethiopia. China holds a majority of
Djibouti's external sovereign debt, and considers the
country as part of its Belt and Road Initiative, which aims
to connect countries to Chinese global trade routes. (See
CRS In Focus IF11304, China's Engagement in Djibouti.)
Huanitarian an d Development Situation
Djibouti hosts more than 35,000 refugees and asylum
seekers fleeing conflict in neighboring states and nearby
Yemen. Many refugees transit via Djibouti to other
countries, given limited access to livelihood opportunities
there. Djibouti's own population of just under 1 million
grapples with chronic drought, which contributes to a high
prevalence of acute malnutrition. More than 90% of its food
is imported. Djibouti is heavily reliant on wheat imports
from Russia and Ukraine; it has been affected by the impact
of Russia's invasion of Ukraine on global food prices as
well as by a severe regional drought.
Djibouti is categorized as a lower-middle-income country,
but it ranks near the bottom of the UN Development
Program's Human Development Index (166 out of 189
countries). The official unemployment rate is nearly 40%
more than 60% of the rural population lives in extreme
poverty. Female genital mutilation/cutting is prevalent.

Figure I. Djibouti

Source: CRS, using ESRI and U.S. State Department data.
Political Situation
President Isma8l Omar Guelleh has led Djibouti since 1999,
when he was elected after the retirement of the country's
first president, Hassan Gouled Aptidon (Guelleh's uncle).
Critics argue that Guelleh's government is authoritarian and
corrupt. His political opponents contend that opening the
country to foreign bases has shielded the president from
greater Western criticism of abuses, allowing Guelleh to
tighten his hold on power, despite public discontent.
In 2010, near the end of Guelleh's second term in office,
the parliament amended the constitution to abolish term
limits. He has since won reelection three more times, in
2011, 2016 and 2021 (despite having vowed that his 2011
reelection would be his third and final time); he carried
the 2021 election with nearly 97% of the vote. As in
previous elections, opposition parties, most of which
boycotted the elections, asserted that the results were
rigged. Age limits in the current constitution would make
Guelleh, born in 1947, ineligible to run for reelection again.
Guelleh's governing Union for the Presidential Majority
coalition (UMP after its French acronym) maintains an
overwhelming majority in parliament, and power within the
coalition is heavily concentrated in the president's own
party. The main opposition parties boycotted the most
recent parliamentary elections, in early 2018.
The State Department's latest human rights report notes that
formal structures of representative government and
electoral processes had little relevance to the real
distribution and exercise of power. The report underscores
suppression of the opposition; arbitrary arrests of
journalists, academics, demonstrators, and opposition
members; and restrictions on freedom of assembly and
speech. It suggests that officials often engaged in corrupt
practices with impunity. It highlights cases of refoulement,
including the forcible return of Tigrayans to Ethiopia.

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